Federal Judge Quashes DOJ Subpoenas in Jerome Powell Investigation

On March 13, 2026, Chief U.S. District Judge James Boasberg issued a ruling that quashed subpoenas from the Justice Department (DOJ) aimed at Federal Reserve Chair Jerome Powell. The subpoenas were part of a criminal investigation concerning Powell's testimony regarding a $2.5 billion renovation project at the Federal Reserve's headquarters. Judge Boasberg concluded that the subpoenas were issued primarily to "harass and pressure" Powell into resigning or to compel him to lower interest rates, a demand frequently made by President Donald Trump. The judge noted, “The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual.”

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The investigation was initiated by U.S. Attorney Jeanine Pirro's office in November 2025, focusing on alleged cost overruns related to the renovation project. Powell had publicly criticized the investigation, asserting that it was politically motivated and aimed at undermining the independence of the Federal Reserve. He stated, “This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure.” The renovation project, initially budgeted at $1.9 billion, had escalated to $2.5 billion due to various unforeseen costs.

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The ruling has significant implications for the Federal Reserve's leadership. Powell's term is set to expire in May 2026, and Trump has nominated former Fed Governor Kevin Warsh to succeed him. However, Senator Thom Tillis, a Republican from North Carolina and a member of the Senate Banking Committee, has vowed to block Warsh's confirmation until the DOJ investigation is resolved. Tillis remarked, “This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence.”

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Following the ruling, Jeanine Pirro expressed her discontent, labeling Boasberg an "activist judge" and asserting that the decision "neutered the grand jury's ability to investigate crime." She announced plans to appeal the ruling, arguing that it undermined the legal process. Pirro stated, “This is wrong and it is without legal authority,” emphasizing her commitment to pursuing the investigation.

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The investigation has drawn criticism from various lawmakers across the political spectrum, who view it as an attack on the Federal Reserve's autonomy. Senator Tim Scott, chair of the Senate Banking Committee, has indicated that while he believes Powell made errors in judgment during his testimony, he does not believe Powell committed a crime. This sentiment is echoed by several other Republican senators who have defended Powell against the DOJ's actions.

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The DOJ's intention to appeal Boasberg's ruling could prolong the investigation and further complicate the confirmation process for Warsh. The Federal Reserve's Open Market Committee is scheduled to meet soon to discuss interest rates, which remain a contentious issue amid ongoing economic pressures. The outcome of the appeal and the subsequent political maneuvering will be closely watched as the situation develops.

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• “The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual.” — Judge James Boasberg

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• “This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence.” — Senator Thom Tillis

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• “This is wrong and it is without legal authority.” — Jeanine Pirro, U.S. Attorney

Judge Blocks Justice Department Subpoenas in Probe of Fed Chair Powell

This ruling marks a pivotal moment in the ongoing tensions between the Trump administration and the Federal Reserve, raising questions about the independence of the central bank and the influence of political pressures on monetary policy.

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